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Manila Bulletin devider Business devider The Stock Market devider Manila Water terminates Pangasinan concession deal

Manila Water terminates Pangasinan concession deal

Published Jan 3, 2024 08:21 am

Manila Water Company, a utility firm controlled by billionaire Enrique K. Razon Jr., has terminated its concession agreement with the Provincial Government of Pangasinan (PGP) for an P8 billion bulk water project.

In a disclosure to the Philippine Stock Exchange (PSE), Manila Water said that the consortium of Manila Water and its wholly-owned subsidiary Manila Water Philippine Ventures Inc., has deemed the concession agreement terminated effective Dec. 31, 2023 “due to non-fulfillment of conditions precedent by PGP.” 

In January 2022, Manila Water disclosed that, following the issuance of the Notice of Award for the implementation of a bulk water supply project in the Province of Pangasinan the consortium signed a concession agreement with the PGP for the project.

The project had an estimated capital expenditure program of P8 billion over a 25-year contract period. It was estimated to deliver a billed volume of 200 million liters per day (200 MLD) by year 25 to approximately 1.4 million residents across 14 cities and municipalities in Pangasinan.

Breaking ground in January 2022, the project called for the implementation of capital expenditure programs that will create an infrastructure that will source water from Agno River using the Riverbank Filtration technology and will increase water supply in the province.

Cities and municipalities in Pangasinan that would have benefited from the project included Villasis, Urdaneta, Malasiqui, Dagupan, Mangaldan, Sta. Barbara, Calasiao, Mapandan, Manaoag, San Carlos, Binmaley, Lingayen, San Jacinto, and San Fabian.

Efforts for the water project began in September 2016 when the consortium submitted an unsolicited proposal to PGP. 

This was followed by the initial evaluation of Pangasinan Public-Private Partnership Selection Committee (PPP-SC) before the Notice of Acceptance was issued in November 2018. 

Negotiations ensued and Joint Certifications of Successful Negotiations was signed in July 2019.

Finally, in September 2021, the provincial government presented the Notice of Award for the development, financing, construction, operation, and maintenance of the bulk water project to Manila Water.
 

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